Merger Seems To Be Working For Chrysler

Speaking to a merger-minded world, the heads of DaimlerChrysler AG said Sunday their controversial linkup is making strides and predicted solid growth for the world's fifth-largest automaker.

"The coming year is expected to show the first positive effects of the merger," said a statement released by the Juergen Schrempp and Robert Eaton, the chairmen of the auto behemoth created this year by a $42 million merger.

Company executives also were upbeat about the clout and savings created by the German company's merger with the veteran U.S. automaker amid industry skepticism about the difficulties of melding the different cultures and products.

"Our integration teams are well on the way to defining and beginning the synergy projects," the statement said.

The company said it expects its have sold about 4.4 million vehicles this year, surpassing an earlier estimate of 4.2 million, and marking a 22 percent increase over the two automakers' 1997 totals.

This year's revenue for the company, created from Chrysler Corp. and Daimler-Benz AG, was up 13 percent, compared with similar figures for the two companies in 1997, officials said.

Officials for the company, now based in Frankfurt, Germany, and suburban Detroit, would not say how much the new company earned, but they said the amount would hit a "significantly higher level" than the combined previous totals for the two companies. Financial details are expected next week.

The company said, however, that the combined revenues of the Chrysler, Dodge, Plymouth and Jeep brands, in addition to Chrysler financial services, grew about 6 percent to $65 million in 1998. That marks a corporate record, according to company officials.

Its glowing predictions for the coming year come after its recent talks with United Auto Workers union about an extended shutdown next year at the company's Jeep production site in Toledo, Ohio.